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What steps can I take to protect myself from personal liability as a business owner in Pennsylvania?

Picture of Chris Battis By   ·  1 minute read

As a business owner in Pennsylvania, there are several steps you can take to protect yourself from personal liability:

  1. Incorporate your business: Incorporating your business as a Limited Liability Company (LLC) or a corporation can provide significant protection from personal liability. This is because it separates your personal assets from that of the company and limits your personal liability for any debts or legal issues the company may face.
  2. Obtain appropriate insurance: Adequate insurance coverage can help mitigate potential costs and liabilities associated with running a business. A commercial liability insurance policy tailored to your business can protect you from many types of legal claims, such as property damage, bodily injury, and professional mistakes.
  3. Comply with all legal requirements: Ensuring that your business complies with all legal requirements can help protect you from any potential legal issues that may arise. This includes complying with employment laws, tax laws, zoning regulations, and intellectual property laws.
  4. Create and maintain proper records: Keeping accurate records can help you minimize legal risks and protect yourself from personal liability. Proper records can also help demonstrate that you have complied with all legal requirements, such as paying taxes or filing required documents.
  5. Hire a qualified attorney: Consulting with an experienced attorney can help you identify potential legal issues and take necessary steps to protect yourself. An attorney can also review your contracts, create customized policies and procedures, and assist with compliance issues, among other services.

It is important to note that while these steps can help mitigate legal risks and protect you from personal liability, they are not foolproof. There may be circumstances where you may still be held personally liable despite taking these precautions. Therefore, it is important to consult with an attorney to ensure that you have taken all necessary steps to protect yourself and your business.